Shriram Properties | Source: www.shriramproperties.com
Bengaluru-based real estate developer Shriram Properties has announced plans to double its annual turnover to Rs 5,000 crore by FY27. The real estate player has set a target of doubling its future project inventory from 18 million square feet to over 35-36 million square feet in the next 18-24 months, the company said at a conference here on Wednesday.
The brokerage aims to achieve cumulative sales of over 20 million square feet in the next three years, with an expected land value of Rs 2,000 crore. Of this, Rs 500 crore will come from SPL’s contributions, while the rest will be generated through joint developments and development management, adhering to an asset-light model.
Bengaluru will add 7-8 million square feet, Chennai will add 5-6 million square feet and Kolkata will contribute 3-4 million square feet over three years, the company said. Pune would contribute around 2 million square feet over the same period.
Additionally, Shriram Properties has rebranded its logo with the 25th anniversary celebrations, while embarking on a mission called SPLNxT, which aims to accelerate growth, reposition the brand and renew its focus on the mid-market and mid-premium segments in Bengaluru, Chennai, Kolkata and Pune, where the company plans to begin operations soon.
“We are embarking on a mission with a brand new identity. This will allow us to create our own identity and elevate and reposition the trusted Shriram brand among NextGen buyers. We will leverage technology for greater customer satisfaction going forward. We see SPL as a dominant force not only in South India but also in our key markets,” said Murali Malayappan, Chairman and Managing Director, Shriram Properties Limited.
Under the SPLNxT strategy, the company expects to achieve significant growth over the next three years, targeting to double sales, triple revenues and quadruple profits. The company is targeting cumulative sales of over 20 million square feet, with key markets being Bengaluru, Chennai and Pune, while Kolkata will continue to be a critical contributor. SPL will leverage its proven operating platform for accelerated sales and accelerated execution.
To fuel this growth, Shriram Properties plans to ramp up new project additions in its core markets, with the aim of more than doubling its project inventory. Currently, SPL has a pipeline of 42 projects with a total development potential of 42 million square feet.
“The outlook for the residential sector remains robust, driven by rising incomes, homeownership aspirations, low interest rates and demographic shifts such as the rise in millennial home buyers. Mid-market segments have shown resilience and growth in recent years, driven by urbanisation, changing preferences, the impact of work-from-home and favourable interest rates,” said Gopalakrishnan, ED and Group CEO, Shriram Properties.
In addition, the company claims that it will add more than 20,000 new customers in three years. It currently has about 28,000 customers, including 11,000 customers in ongoing projects.
Since the introduction of RERA in the last seven years, Shriram Properties has seen remarkable growth in scale. Sales volume has almost tripled to 4.6 million sq ft, sales value has increased fivefold to Rs 2,362 crore and annual handovers have quadrupled to over 3,000 units in FY24.
First publication: Aug 22, 2024 | 01:32 AM IST